viewpoint:
A definitive insight into the UK Out of Home industry
A definitive insight into the UK Out of Home industry
09
viewpoint the changing face of OOH
unlocking the value of data to increase marketing ROI
Carolyn Nugent, UK Head of Digital, shares her views on the growth of digital OOH in the UK market
Mick Ridley on the value of unlocking data to better understand consumer behaviour and how this translates to increased marketing ROI
innovations A showcase of our latest campaigns from around the UK
02–03
viewpoint:
the changing face of OOH
face tracking the mall consumer Kinetic has pioneered unique face-tracking research into consumer mood and engagement with digital OOH in the shopping mall environment. Conducted in partnership with Clear Channel Outdoor, the study revealed new insights into engagement and optimum animation levels of digital advertising.
The past few years have seen a rapid expansion in digital OOH in the UK. Most recently, the OAA published figures that digital expenditure for Q2 2010 increased 79% to £27.2m when compared to spend in the same quarter in 2009 – indicating a significant leap. Digital is the fastest-growing part of the sector, with spend on digital screens reaching 12.8% of total Outdoor spend.
Carolyn Nugent Head of Digital, UK carolyn.nugent@kineticww.com
“ The role of technology has also become increasingly more important to us all, allowing people to be less reliant on the office and more mobile than ever before.”
This growth has been largely driven by the introduction of new opportunities not available in early 2009. Ocean’s premium large format sites, the fast expansion and popularity of mall screens, and Digicom’s growing digital portfolio, including its convenience store formats, have all had a considerable impact on the market. The role of technology has also become increasingly more important to us all, allowing people to be less reliant on the home or the office and more mobile than ever before. This mobility allows people to adapt their lifestyles and change the environments in which they spend their time. Digital revenues are expected to continue to rise in 2010, reaching the £90m revenue mark. This is fuelled by further expansion of networks, the rise of new technologies and advertisers’ increased recognition of digital OOH’s potential. The ability to deliver tactical, flexible, time-sensitive campaigns that offer integration with press, TV and online activities, continues to encourage new interest in the medium.
The market, however, is inevitably fragmented with a wide range of different environments, formats and size types available. In response to this, Kinetic has launched – in partnership with digital production company Grand Visual – its second edition of the Digital OOH Handbook. The handbook is a reference guide to all existing UK digital OOH opportunities, and provides insight into how the medium can best be used for effective advertiser communication.
A definitive insight into the UK Out of Home industry
The development of digital interactive technologies that captivate and engage audiences continues to grow. Incorporating technologies such as touch screens, gender, facial, gesture or fullbody recognition, adds a new dimension to an OOH campaign. Augmented reality, where one’s perception of reality is momentarily modified, has particularly captured advertisers’ imaginations, but has yet to be used to its full potential on digital sites in the UK. The rising power of the mobile phone and its potential for interaction, and natural synergy with both standard and digital Out of Home is the next area where we expect to see significant progression. Bluetooth opportunities have been possible for several years and we are now seeing campaigns with direct links to social networking sites such as Facebook and Twitter. Digital truly represents the height of the Out of Home medium’s ability to target people, however diverse their lifestyle, in the right place at the right time.
“ Digital truly represents the height of the Out of Home medium’s ability to target people, however diverse their lifestyle, in the right place at the right time.”
Cutting-edge face tracking technology from the Fraunhofer Institute – inventors of the MP3 audio format – tracked contact with advertising displayed at the Westfield mall in Tunbridge Wells and later at Merry Hill. An HD camera was placed on a digital screen, providing contact data. Insights from the study revealed that ad contacts strongly correlated to footfall, particularly at weekends where a more relaxed mindset resulted in much longer duration of contact. As our previous research suggests, animated and scrolling copy worked better than static, whilst the degree of animation is crucial to attracting attention. Shoppers were three times as likely to be happy than sad in a mall environment. Younger audiences were more engaged with digital and static advertising; older audiences less so, but they had a greater range of expression. The research has helped inform improved use of the message and creative and reinforces that digital OOH should be used as a medium in its own right and not as a surrogate for TV commercials.
04–05 02–03
viewpoint:
the value of unlocking data to better understand consumer behaviour
A definitive insight into the UK Out of Home industry
“ It allows us to understand who the consumer is geo-demographically, where they come from at a micro and macro level and associate it with where the transaction occurred.”
Data is everywhere. The trail we leave behind as we go about our daily lives is phenomenal. In February, a report in The Economist detailed the exponential growth in the amount of data that is being created every second of every day and the challenges that companies face with using it to their advantage. The sheer amount of data that is being created is mind-boggling. In 2005 mankind created an estimated 150 exabytes of data globally (that’s 150 billion gigabytes); this year we will create 1,200 exabytes.
Mick Ridley Managing Director, Meta mick.ridley@metaww.com
Where does this data come from? The term ‘data exhaust’ has been used to describe the trail of clicks that users leave behind on the internet from which value can be extracted. However, we must not get caught up in thinking that the ‘digital economy’ is the be all and end all. There is no denying the rapid developments that are taking place in digital advertising channels, such as those within Out of Home, but the number of consumers making purchasing decisions online is not as high as generally presumed. Figures released for March 2010 reveal that online retail sales in the UK account for 6.9% of the total i.e. by focusing on digital only we are missing out on 93% of the picture. Meanwhile we already know from studies such as IPA Touchpoints 3 that people are spending more and more time outside the home.
So what is the data ‘exhaust’ in the real world and how can companies collect data? Imagine a typical commuter’s day – they go to the station where they swipe their travel card to get through the barrier – this is the first data collection point. At the station our commuter sees some billboards with an offer they respond to using SMS (another data collection point). They get on the train and look at a news application using their Smartphone – more data as they are using a location aware app. They get off the train (again swiping their travel card) and go to a supermarket to buy sandwiches for lunch. As they pay they swipe their loyalty card at the cash register (more data). They haven’t even got to the office and we already have five data collection points – and they haven’t gone online in the traditional sense.
Meta, a newly relaunched division within Kinetic Worldwide, has helped many companies understand their consumers better using transactional data. This might be from events tickets sold through to an insurance quotation made online. In most instances the consumer leaves behind key information such as their postcode, the date and time of the transaction and data from the transaction itself. In this instance, the postcode is king – it gives all the other pieces of information context. It allows us to understand who the consumer is geo-demographically, where they come from at a micro and macro level and associate it with where the transaction occurred.
“ The key is to enhancing marketing ROI is to make this information accessible and actionable.” Companies that generally don’t gather online data, such as high street retailers and supermarkets, are still able to glean information through couponing or competitions that require customers to enter data on a website or entry form. The key to enhancing marketing ROI is to make this information accessible and actionable. It is so often the case that valuable business data is locked up inside IT departments where, for various reasons, it is difficult to extract.
Meta takes a holistic view of the data that companies hold by auditing their information assets. Once this is done the data is enhanced utilising Meta’s own datasets and finally placed into easily used web-based tools allowing users to access actionable intelligence. All industries suffer with either a surfeit or a deficit of data. Both cases require slightly different approaches but the end result must always be the same; the generation of insights that enhance business and marketing strategies.
06–07
viewpoint:
A definitive insight into the UK Out of Home industry
light news The latest news and developments shaping the industry
Clear Channel helps advertisers target cyclists
Ocean Outdoor expands its digital footprint
Clear Channel has developed a portfolio of advertising opportunities to help brands target cyclists following the launch of the Barclays Cycle Hire Scheme in London. 6-sheet and phone box panels within 100m proximity are available around the new docking stations for the hire bikes and along the Barclays Cycle Superhighway routes created as part of the program. The Barclays cycle scheme is expected to add 55,000 additional cycle trips around London per day.
Ocean Outdoor developed a new threesided 25m tall digital LED that displays four 10-second slots in a loop. The site is located on the roundabout at the sole entrance to Westfield and is said to reach an audience of 700,000 vehicles and pedestrians every two weeks. Also adding to its expansion, Ocean has also recently renewed London’s BFI Imax cinema contract until 2016.
JCDecaux and Primesight win road and rail advertising contracts In May, Network Rail awarded its railside and roadside outdoor advertising contracts, worth a combined £260m over five years, to JCDecaux and Primesight. The railside contract includes all rail-facing ad sites across the Network Rail estate, including six-sheets, Transvision screens and large-format sites across the 18 Network Railmanaged stations.
Exclusive outdoor sites offered for 2012 olympic advertisers
Digital strengthens growth in outdoor ad revenue
Between 2,000 and 3,000 exclusive sites will be offered by nearly 35 advertising agencies from January to June 2011. The London Organising Committee of the Olympic and Paralympic Games are looking for a supplier to develop and operate a trading system for buying and selling OOH advertising. Panasonic plans to place a giant screen in London’s Trafalgar Square while the flagship John Lewis store on Oxford Street will feature a window display with London 2012 merchandise.
The Outdoor Advertising Association (OAA) reported that the 79.1% rise in digital OOH revenue has been a significant factor in increasing outdoor investment. The most popular formats include specials, digital and large format. Skye Broadcasting and Marks & Spencer are reportedly the biggest spenders on outdoor. According to Nielsen, 75% of the top 100 advertisers have increased spend on outdoor formats.
Kinetic launches digital OOH handbook against double-digit growth for OOH Kinetic – in partnership with Grand Visual – has released its second annual Digital Out of Home Handbook, the definitive guide to the growing digital OOH sector. The 130-page guide is published as the Outdoor Advertising Association (OAA) reports double-digit growth for digital Out of Home revenues in the first half of 2010. For your copy, please contact your Kinetic Account Manager.
08
innovations A showcase of the latest OOH campaigns around the UK
Ford reaches out to families with dual screen digital OOH campaign
IBM brings the Wimbledon to Heathrow airport
Nike makes play to be remembered with carving
Ford launched a dual screen digital OOH campaign to promote its seven-seat Galaxy model targeting dads and their kids. JCDecaux adapted its 6-sheet advertising sites to carry two 42” interactive digital screens that allowed dads to touch the interface for more information on Ford cars and contained games for children to play on the screen below. The campaign appeared on JCDecaux’s dual screens located in Heathrow Terminal 5, Gatwick, Luton, Edinburgh and Glasgow airports and in shopping centres at Bluewater, Birmingham Bullring and the Trafford Centre. Billboards also supported the campaign at airports, shopping centres and railway stations around the UK.
In a media first, IBM kept passengers at Heathrow Terminal 5 up to date with the latest Wimbledon Tennis Championship information right to the boarding gate. Seventy-three digital screens, programmed to select match updates and players were located in the departure lounges along the main walkways.
To target those excited about the World Cup in South Africa, Nike partnered with Kinetic and Mindshare to build a giant, impactful structure. The result was an installation spanning part of the Cromwell Road, playing on the American Founding Fathers on Mount Rushmore. This media first featured Wayne Rooney, Theo Walcott, James Milner and Rio Ferdinand and encouraged the England stars to ‘Play to be Remembered’; to make history on the pitch. It was part of an integrated comms campaign around the event.